Why Is Olectra Greentech's Stock Rising On The Back Of The Interim Budget Announcement?

Published 01-02-2024, 01:33 pm
Updated 01-02-2024, 02:46 pm
© Reuters.  Why Is Olectra Greentech's Stock Rising On The Back Of The Interim Budget Announcement?

Benzinga - Olectra Greentech (NS:OLEC), a key player in the electric vehicle (EV) sector, saw its shares surge following Finance Minister Nirmala Sitharaman’s announcement in the 2024-25 Interim Budget. The budget focuses on expanding the EV ecosystem, including enhancing manufacturing and charging infrastructure and introducing a scheme to promote green growth.

What Happened? In India, one of the fastest-growing economies globally, the push for 30% EV usage by 2030 marks a significant step towards balancing economic growth with environmental sustainability. Olectra Greentech’s recent performance mirrors this ambition.

In the third quarter of FY 23-24, the company reported a robust 33% revenue increase to ₹342.14 crore, driven by significant vehicle deliveries. Notably, Olectra celebrated delivering 1,615 electric vehicles, significantly boosting its revenue.

See also: Budget 2024 Live Updates: Nirmala Sitharaman Proposes No Changes In Tax Structures

The company’s financial health showed remarkable improvement. Its EBITDA soared to ₹56.10 crore, a 52% year-over-year increase. The Profit Before Tax (PBT) jumped by 65% to ₹33.84 crore, and the Profit After Tax (PAT) climbed by 77% to ₹27.11 crore.

Additionally, Olectra delivered 178 electric vehicles in this quarter, marking a 25% increase from the previous year.

Price Action: Olectra Greentech Ltd. shares were up 3.71% at ₹1,844.90 right after the speech but have since moderated to ₹1,753.90.

Read next: End Of The Line? Railway Stocks Lose Steam As Budget Disappoints Investors

Original Article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.